Casualty Loss From A Disaster – Tax Considerations

Interesting forum for those affected by the flood but without insurance:

“My home was partially destroyed due to the Colorado floods last weekend and we do not have flood insurance…..I read that the loss of property value to my home could be a tax deduction and, because we are a declared federal disaster area, we could amend our 2012 return and get a refund right away.….

….Casualty losses are generally deductible in the year the casualty occurred. However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to treat the loss as having occurred in the year immediately preceding the tax year in which the disaster happened, and you can deduct the loss on your return or amended return for that preceding tax year.

So that is correct – you may amend your 2012 tax return and claim the casualty loss deduction as if it were occurred in 2012 – so refund will be received faster.
Review Disaster Assistance and Emergency Relief for Individuals and Businesses on IRS.gov, for information regarding time frames and additional information to your specific qualifying event.”